SAN JUAN CAPISTRANO, CA-The seller of a 25,561-sf mixed-use center here included a 12-month rent guarantee to the buyer of the 87%-leased property, according to Irvine-based Faris Lee Investments. Donald MacLellan of Faris Lee, who represented the seller, explains to that the deal provides for the seller, Irvine-based Citivest, to make up the rent and triple-net charges for the portion of the center that was vacant at the time of the sale.

The property, a two-story project on 1.11 acres at 27184 Ortega Highway, is called the Capistrano Collection and sold for just under $10.2 million to Orange County-based Needleman Investments. MacLellan says that the rent guarantee, an unusual but not unheard of provision in a sales contract, was a means of maintaining the sales price that had been negotiated for the property.

Built in 1991, the Capistrano Collection is approximately two-thirds retail and one-third office, with a diverse mix of tenants. The deal closed at a cap rate of 5.4% on existing income, a record low cap rate for an office/retail project over $10 million in Orange County, according to Faris Lee.

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